Climate change, diversity, executive pay and Covid relief on RLAM's watchlist for AGM season

Sophie Johnson, Corporate Governance Manager at Royal London Asset Management (RLAM) said:

“This year’s AGM season for RLAM is revolving heavily around climate change, diversity and executive remuneration; paying particularly close attention to how companies operate in a post Covid-19 world.

“As responsible investors we are not only seeking out companies’ performance levels but also looking at their approach to areas such as diversity, and assessing what ambitions are in place to improve diversity in all forms across all business levels.

“RLAM feels passionate about the transition to a lower-carbon economy.  Therefore, we are looking at companies who are investing the time and effort to progress their climate net-zero transition strategies.

“Pay awards this year are a huge focus – and we will be identifying those who are making better decisions, ensuring they are in line with their financial performance. We will also be looking closely at those companies who haven’t paid back Covid relief but are choosing to grant substantial bonus payments.

“While we cannot expect every company to produce perfect climate transition plans or hit every ESG target, we can expect companies to have a clear position and commitment to their future plans. They should be holding themselves accountable and providing crucial facts and figures that accurately measure progress against their objectives.”